Carroll Company Accrued Interest of $500 on a $10,000, 10

Multiple Choice

Carroll Company accrued interest of $500 on a $10,000, 10% note payable at December 31. The annual interest payment will be made on July 1. The reversing entry will include a ________.

A) credit to Interest Payable for $500
B) debit to Notes Payable for $10,000
C) credit to Interest Expense of $500
D) debit to Cash for $500